A

RESEARCH REPORT

ON

“LAUNCHING OF BMW BIKES IN INDIA”

Submitted in the partial fulfillment of the requirement of the degree

of

BACHELOR OF BUSINESS ADMINISTRATION

In Marketing

(2015-2018)

FACULTY SUPERVISOR SUBMITTED BY

Mrs. Rashmi Kaushki Shobhit Kumar
BBA 6th Sem.
1599209575

MANGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY

KNOWLEDGE PARK-II, GREATER NOIDA,
UTTAR PRADESH-201306
 Mangalmay Institute of Management
& Technology
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e-mail: info@mangalmay.org, Visit us at: www.mangalmay.org

CERTIFICATE
This is to certify that Mr SHOBHIT KUMAR University Roll No. 1599209575 is a
regular student of BBA final year full time degree course at our institute. His / Her
Summer Training Project work entitled “LAUNCHIN OF BMW BIKES IN INDIA’’
submitted as a part of the curriculum for the award of Bachelor of Business
Administration degree of C.C.S University, at Mangalmay Institute of Management
and Technology, Greater Noida is an original work conducted by him/her.
This work has not been submitted earlier in part or full to this or any other
Institute/University for any degree or diploma.

Dr. Amit Gupta

Head of Department
 ACKNOWLEDGEMENT

A work is never a work of an individual. I owe a sense of gratitude to the

intelligence and co-operation of those people who had been so easy to let me

understand what I needed from time for completion of this exclusive

research report. I would like to place my indebtedness to various individuals

who are cooperative in completion of my research report. This report on

“LAUNCHING OF BMW BIKES IN INDIA” has been successfully completed

with the assistance of many people.

I am also grateful to Mr. Rashmi Kaushki,, Faculty of Mangalmay Institute

of Management & Technology, for permitting me to undertake this study.

Last but not the least, I express very heartfelt thanks to my family member,

my faculty member, my friends and colleagues whose encouragement and

support was extremely vital for the successful completion of the project.

Shobhit Kumar
ROLL NO. 1599209575
 DECLARATION

I hereby declare that this project entitled “ LAUNCHING OF BMW BIKES IN INDIA”
is written and submitted by me under the kind guidance of Mr. Rashmi Kaushki,
Faculty of Mangalmay Institute of Management & Technology.

This findings and interpretations in the report are based on both primary and
secondary data collection. This report is not copied from any source or other report
submitted for similar purpose.

SHOBHIT KUMAR
ROLL NO. 1599209575
 Table of Contents

BONAFIEDCERTIFICATE……………………………………………….

ACKNOWLEWLEDGEMENT……………………………………………

DECLARATION……………………………………………………………

Chapter 1 – INTRODUCTION 1-26

History of BMW……………………………………………………................................
Population of India and profiles…………………………………………......................
India – GDP and Growth………………………………………………………………...
Changing Profiles of Indian customers………………………………………………...

Chapter 2-LITERATURE REVIEW 27-34

Psychographics of the Indian customer………………………………………………
Psychographic profile of customer………………………………………….………....
Purchasing Power……………………………………………………………………….

Chapter 3 – RESEARCH METHODOLCOGY 35-71

Overview – India………………………………….……………………….
Population of India and profiles…………….……………………………..
India – GDP and Growth…………….…………………………………….
Changing Profiles of Indian customers……………………………………
Psychographics of the Indian customer…………………………………..
Psychographic profile of customer……………………………………….
Purchasing Power……………………………………………………………..

Chapter 3.1 – Two Wheeler Market Aggregate……………………….

Historical trend of 2 wheeler market in India:………………......................
Changing % of 2 wheeler market vis-à-vis overall automobile market........
Chapter 3.2 - Two wheeler market segmentation…………………….
Segmentation between scooters and motorcycles:……………………..
Segmentation in terms of cc……………………………………………
Production Figure……………………………………………................
Domestic sales Figures…………………………………………………
Export Figure……………………………..………….............................
Emerging Trends:………………………………………………………..

Chapter 3.3 – Supply Side (Focus on 500 CC+).......................................

Company Profiles:.....................................................................................
Nature of Competition and Cooperation...................................................

Chapter 3.4 – Electric Vehicles..................................................................

Electric Two wheeler Market in India........................................................
Growth in electrical two wheeler Market....................................................
Driver of Growth.........................................................................................
Customer Segments for electric 2 vehicles.................................................
Electric Bike & Scooter Models in India....................................................

Chapter 4 - DATA & ANALYSIS 72-79

Finding data

Doing analysis

Chapter 5 - CONCLUSION & RECOMMENDATION 80-87

Limitation
Conclusion
Recommendation

Chapter-5 ANNEXURE 88-93

Bibliography
 Chapter 1

INTRODUCTION
 Company history

BMW Headquarters in Munich, Germany

After World War I, BMW was forced to cease aircraft (engine) production by the terms of
the Versailles Armistice Treaty. The company consequently shifted to motorcycle production
in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in
1928–29.The circular blue and white BMW logo or roundel is portrayed by BMW as the
movement of an aircraft propeller, to signify the white blades cutting through the blue sky –
an interpretation that BMW adopted for convenience in 1929, twelve years after the roundel
was created. The emblem evolved from the circular Rapp Motorenwerke company logo, from
which the BMW company grew, combined with the white and blue colors of the flag
of Bavaria, reversed to produce the BMW roundel. However, the origin of the logo being
based on the movement of a propeller is in dispute, according to an article recently posted by
the New York times, quoting "At the BMW Museum in Munich, Anne Schmidt-Possiwal,
explained that the blue-and-white company logo did not represent a spinning propeller, but
was meant to show the colors of the Free State of Bavaria."

BMW's first significant aircraft engine was the BMW IIIa inline-six liquid-cooled engine of
1918, much preferred for its high-altitude performance. With German rearmament in the
1930s, the company again began producing aircraft engines for the Luftwaffe. Among its
successful WWII engine designs were the BMW 132 and BMW 801 air-cooled radial
engines, and the pioneering BMW 003 axial-flow turbojet, which powered the tiny, 1944-45-
era jet-powered "emergency fighter", the Heinkel He 162 Salamander. The BMW 003 jet
engine was tested in the A-1b version of the world's first jet fighter, the Messerschmitt Me
262, but BMW engines failed on takeoff, a major setback for the jet fighter program until
successful testing with Junkers engines. By 1959 the automotive division of BMW was in
financial difficulties and a shareholders meeting was held to decide whether to go into
liquidation or find a way of carrying on. It was decided to carry on and to try to cash in on the
current economy car boom enjoyed so successfully by some of Germany's ex-aircraft
manufacturers such as Messerschmitt and Heinkel. The rights to manufacture the Italian Iso
Isetta were bought, the tiny cars themselves were to be powered by a modified form of
BMW's own motorcycle engine. This was moderately successful and helped the company get
back on its feet. The controlling majority shareholder of the BMW Aktiengesellschaft since
1959 is the Quandt family, which owns about 46% of the stock. The rest is in public float.

In 1992, BMW acquired a large stake in Californian-based industrial

design studio DesignworksUSA, which they fully acquired in 1995. In 1994, BMW bought
the British Rover Group ( which at the time consisted of the Rover, Land
Rover and MG brands as well as the rights to defunct brands including Austin and Morris),
and owned it for six years. By 2000, Rover was making huge losses and BMW decided to sell
the combine. The MG and Rover brands were sold to the Phoenix Consortium to form MG
Rover, while Land Rover was taken over by Ford. BMW, meanwhile, retained the rights to
build the new MINI, which was launched in 2001.

Chief designer Chris Bangle announced his departure from BMW in February 2009, after
serving on the design team for nearly seventeen years. He was replaced by Adrian van
Hooydonk, Bangle's former right hand man. Bangle was famously (or infamously) known for
his radical designs such as the 2002 7-Series and the 2002 Z4. In July 2007, the production
rights for Husqvarna Motorcycles was purchased by BMW for a reported 93 million
euros. BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate
enterprise. All development, sales and production activities, as well as the current workforce,
have remained in place at its present location at Varese.BMW logo has official Bavaria colors
(blue and white) and is believed to be derived from the Rapp Motorwerke logo.

Nazi connections
Günther Quandt, whose family became major shareholders of BMW 15 years after the war,
was a member of the Nazi Party from 1933. After the election of Hitler, he was appointed to
the position of Leader of the Armament Economy, which was a title given to industrialists
who played a leading role in the Nazi war economy. Quandt's factories supplied ammunition,
rifles, artillery and batteries for the Nazis and, it is claimed, used slave labourers
from concentration camps in some of his factories.

A documentary which aired on German TV in 2007 claimed that Quandt not only used slave
labour, but also sidestepped postwar recrimination. BMW itself was not implicated in the
documentary, and the firm has made no comment about the Quandts, but claims to have
confronted its own wartime history via independent research projects. The Quandt family
responded by pledging to fund a research project into the family's Nazi past and its role under
the Third Reich.

Former Danish freedom fighter Carl Adolf Sørensen (b. ca. 1927) has been asked to meet
with the Quandt family and possibly receive compensation, but has repeatedly refused to do
so on the grounds that it is too late. In 1943, as a 17-year-old, he and 39 other resistance
fighters were sent to Germany where they worked with dangerous chemicals, some dying
within a few months, and only four of the group were still alive as of May 2009
 Production

In 2006, BMW produced 1,366,838 four-wheeled vehicles, which were manufactured in five
countries. In 2009, it manufactured 1,258,417 four-wheeled vehicles. In 2009, BMW
Motorrad produced 82,631 motorcycles.

Country Make Cars (2006) Cars (2008) Models

Germany BMW 905,057 901,898 Others

United Kingdom Mini 187,454 235,019 All Minis

Rolls-Royce 67 1,417 All Rolls-Royce

Austria BMW 114,306 82,863 BMW X3

USA BMW 105,172 170,741 BMW X5, X6

South Africa BMW 54,782 47,980 BMW 3-Series

Total 1,366,838 1,439,918

 Sales (BMW-brand)

Vehicles sold in all markets according to BMW's annual reports.

Year Total

2000 822,181

2001 880,677

2002 913,225

2003 928,151

2004 1,023,583

2005 1,126,768

2006 1,185,088

2007 1,276,793

2008 1,202,239

2009 1,068,770
 Bayerische Motoren Werke AG

Type Aktiengesellschaft (FWB:BMW)

Industry Automotive industry

Founded 1916

Founder(s) Franz Josef Popp

Headquarters Munich, Germany

Area served Worldwide

Key people Norbert Reithofer (CEO), Joachim

Milberg (Chairman of
the supervisory board)

Products Automobiles, motorcycles,bicycles

Revenue €50.68 billion (2009)[1]

Operating €289 million (2009)[1]

income

Profit €204 million (2009)[1]

Employees 96,230 (2009)[1]

Subsidiaries Rolls-Royce Motor Cars

Website bmw.com

Bayerische Motoren Werke AG (BMW) is a German automobile, motorcycle and engine

manufacturing company founded in 1916. It also owns and produces the MINI brand, and is
the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW
Motorrad and Husqvarna brands. BMW is known for its performance and luxury vehicles.

Motorcycles

The R32 motorcycle, the first BMW motor vehicle.

BMW began building motorcycle engines and then motorcycles after World War I. Its
motorcycle brand is now known as BMW Motorrad. Their first successful motorcycle, after
the failed Helios and Flink, was the "R32" in 1923. This had a "Boxer" twin engine, in which
a cylinder projects into the air-flow from each side of the machine. Apart from their single
cylinder models (basically to the same pattern), all their motorcycles used this distinctive
layout until the early 1980s. Many BMWs are still produced in this layout, which is
designated the R Series.

BMW roundel in 1939

BMW K1200GT

BMW 1955 R67/3 was the last of the "plunger" models

During the Second World War, BMW produced the BMW R75 motorcycle with
a sidecar attached. Featuring a unique design copied from the Zündapp KS750, its sidecar
wheel was also motor-driven. Combined with a lockable differential, this made the vehicle
very capable off-road, an equivalent in many ways to the Jeep.

In 1983, came the K Series, shaft drive but water-cooled and with either three or four
cylinders mounted in a straight line from front to back. Shortly after, BMW also started
making the chain-drivenF and G series with single and parallel twin Rotax engines.

In the early 1990s, BMW updated the airhead Boxer engine which became known as
the oilhead. In 2002, the oilhead engine had two spark plugs per cylinder. In 2004 it added a
built-in balance shaft, an increased capacity to 1170 cc and enhanced performance to 100 hp
(75 kW) for the R1200GS, compared to 85 hp (63 kW) of the previous R1150GS. More
powerful variants of the oilhead engines are available in the R1100S and R1200S, producing
98 hp (73 kW) and 122 hp (91 kW), respectively.

In 2004, BMW introduced the new K1200S Sports Bike which marked a departure for BMW.
It features and engine producing 167 hp (125 kW),derived from the company's work with the
Williams F1 team, and is lighter than previous K models. Innovations include electronically
adjustable front and rear suspension, and a Hossack-type front fork that BMW calls
Duolever.

BMW introduced anti-lock brakes on production motorcycles starting in the late 1980s. The
generation of anti-lock brakes available on the 2006 and later BMW motorcycles pave the
way for the introduction of electronic stability control, or anti-skid technology later in the
2007 model year.

BMW has been an innovator in motorcycle suspension design, taking up telescopic front
suspension long before most other manufacturers. Then they switched to an Earles fork, front
suspension by swinging fork (1955 to 1969). Most modern BMWs are truly rear swingarm,
single sided at the back (compare with the regular swinging fork usually, and wrongly,
called swinging arm). Some BMWs started using yet another trademark front suspension
design, the Telelever, in the early 1990s. Like the Earles fork, the Telelever significantly
reduces dive under braking.

In July 2007, the Swedish Husqvarna Motorcycles was purchased by BMW for a reported
€93 million. BMW Motorrad plans to continue operating Husqvarna Motorcycles as a
separate enterprise. All development, sales and production activities, as well as the current
workforce, have remained in place at its present location at Varese.[18] Husqvarna
manufactures motocross, enduro and supermoto motorcycles.

Automobiles

New Class
The New Class (German: Neue Klasse) was a line of compact sedans and coupes starting
with the 1962 1500 and continuing through the last 2002s in 1977. Powered by BMW's
celebrated four-cylinder M10 engine, the New Class models featured a fully independent
suspension, MacPherson struts in front, and front disc brakes. Initially a family of four-door
sedans and two-door coupes, the New Class line was broadened to two-door sports sedans
with the addition of the 02 Series 1600 and 2002 in 1966.

Sharing little in common with the rest of the line beyond power train, the sporty siblings
caught auto enthusiasts' attention and established BMW as an international brand. Precursors
to the famed BMW 3 Series, the two-doors' success cemented the firm's future as an upper
tier performance car maker. New Class four-doors with numbers ending in "0" were replaced
by the larger BMW 5 Series in 1972. The upscale 2000C and 2000CS coupes were replaced
by the six-cylinder BMW E9, introduced in 1969 with the 2800CS. The 1600 two-door was
discontinued in 1975, the 2002 replaced by the 320i in 1975.

Current models

BMW 3-Series (E90)

The 1 Series, launched in 2004, is BMW's smallest car, and available in coupe/convertible
(E82/E88) and hatchback (E81/E87) forms. The 3 Series, a compact executive
car manufactured since model year 1975, is currently in its fifth generation (E90); models
include the sport sedan (E90), station wagon (E91), coupe (E92), and convertible (E93).
Since its first generation, the 3-Series is considered to be the benchmark, and competitors are
often judged on how close they come to this car. In some countries, it has even outsold
significantly cheaper models, most notably Ford Mondeo in the UK, and accounts for a
majority of BMW's worldwide sales. The 5 Series is a mid-size executive car, available in
sedan (E60) and station wagon (E61) forms. The 5 Series Gran Turismo (F07), beginning in
2010, will create a segment between station wagons and crossover SUV.

BMW 7-Series (F01)

BMW's full-size flagship executive sedan is the 7 Series. Typically, BMW introduces many
of their innovations first in the 7 Series, such as the somewhat controversial iDrive system.
The 7 Series Hydrogen, featuring one of the world's first hydrogen fueled internal
combustion engines, is fueled by liquid hydrogen and emits only clean water vapor. The
latest generation (F01) debuted in 2009. Based on the 5 Series' platform, the 6 Series is
BMW's grand touring luxury sport coupe/convertible (E63/E64). A 2-
seater roadster and coupe which succeeded the Z3, the Z4 (E85) has been sold since 2002.

BMW X3 SUV (E83)

The X3 (E83), BMW's first crossover SUV (called SAV or "Sports Activity Vehicle" by
BMW) debuted in 2003 and is based on the E46/16 3 Series platform. Marketed in Europe as
an off-roader, it benefits from BMW's xDrive all-wheel drive system. The all-wheel
drive X5 (E70) is a mid-size luxury SUV (SAV) sold by BMW since 2000. A 4-seat
crossover SUV released by BMW in December 2007, the X6 is marketed as a "Sports
Activity Coupe" (SAC) by the BMW. The upcoming X1 extends the BMW Sports Activity
Series model lineup.

BMW M models

BMW M3 Coupé (E92)

Based on the 3 Series, the M3 defined an entirely new market for BMW: a race-ready
production vehicle. Since its debut, the M3 is heralded in enthusiast circles, in large part due
to its unique geometry and award winning engines. The newest V8-powered platform became
available the Autumn of 2007 in Europe, and second quarter of 2008 for the U.S. in coupe
(E92), and later the cabriolet (E93), and sedan (E90) variants. Based on the 5 Series,
the M5 is the M division's V10-powered version of the E60 5 Series.[20] The M6 is the M
division's version of the 6 Series, and shares its drivetrain with the M5. The Z4 M, or M
Coupe/M Roadster, is the M division's version of the Z4. The X5M is the M division's
version of the X5, and the X6M is the M division's version of the X6. Both the X5M and
X6M share the same V8 twin scroll twin turbo.

Motorsport

BMW has been engaged in motorsport activities since the dawn of the first BMW
motorcycle.

Sponsoring

 Formula BMW – A Junior racing Formula category.

 Kumho BMW Championship – A BMW-exclusive championship run in the United
Kingdom.

Motorcycle

BMW S1000RR
 Isle of Man TT – in 1939 BMW became the first foreign manufacturer to win the Isle of
Mann TT race with Georg Meier

 Dakar Rally – BMW motorcycles have won the Dakar rally six times. In 1981, 1983,
1984, 1985, 1999, and 2000.[21]
 Superbike World Championship – BMW returned to premier road racing in 2009 with
their all new superbike, the BMW S1000RR.

Formula One

BMW Sauber F1 Team Logo.

BMW first entered Formula One as a fully-fledged team in 2006.

BMW has a history of success in Formula One. BMW powered cars have won 20 races.In
2006 BMW took over the Sauber team and became Formula One constructors. In 2007 and
2008 the team enjoyed some success. The most recent win is a lone constructor team's victory
by BMW Sauber F1 Team, on 8 June 2008, at the Canadian Grand Prix with Robert
Kubica driving. Achievements include:

 Driver championship: 1 (1983)

 Constructor championship: 0 (Runner-up 2002, 2003, 2007)
 Grand Prix wins: 20
 Podium finishes: 76
 Pole positions: 33
 Fastest laps: 33

BMW was an engine supplier to Williams, Benetton, Brabham, and Arrows. Notable drivers
who have started their Formula One careers with BMW include Jenson Button, Juan Pablo
Montoya, and Sebastian Vettel.

In July 2009, BMW announced that it would withdraw from Formula One at the end of the
2009 season.

Sports car
 Le Mans 24 Hours – BMW won Le Mans in 1999 with the BMW V12 LMR designed by
Williams Grand Prix Engineering. Also the Kokusai Kaihatsu Racing team won the 1995
edition with a BMW-engined McLaren F1 GTR race car.
 Nürburgring – BMW won the 24 Hours Nürburgring 18 times and the 1000km
Nürburgring twice (1976 and 1981).
 24 Hours of Daytona – BMW won 1 time (1976)
 Spa 24 Hours – BMW won 21 times
 McLaren F1 GTR – Successful mid-1990s GT racing car with a BMW designed engine.
It won the BPR Global GT Series in 1995 and 1996 and the 24 Hours of Le
Mans in 1995.

Touring car
BMW has a long and successful history in touring car racing.

 European Touring Car Championship (ETCC) – Since 1968, BMW won 24 drivers'
championships[citation needed] along with several manufacturers' and teams' titles.
 World Touring Car Championship (WTCC) – BMW won four drivers' championship
(1987, 2005, 2006 and 2007) and three manufacturers' titles (2005–2007).
 DTM (Deutsche Tourenwagen Meisterschaft) – the following won the DTM drivers'
championship driving BMWs:

 1989: Roberto Ravaglia, BMW M3

 1987: Eric van der Poele, BMW M3
 The DRM (Deutsche Rennsport Meisterschaft) was won by Harald Ertl in a BMW
320i Turbo in 1978
 British Touring Car Championship (BTCC) – BMW won the drivers' championship in
1988, 1991, 1992 and 1993 and manufacturers' championship in 1991 and 1993.
 Japanese Touring Car Championship (JTCC) – BMW (Schnitzer) flew from Europe to
Japan to compete in the JTCC and won the championship in 1995.
 Mille Miglia – BMW won Mille Miglia in 1940 in with a 328 Touring Coupé. Previously
in 1938 the 328 sport car also obtained a class victory.

Rally

 RAC Rally – The 328 sport car won this event in 1939.
 Paris Dakar Rally – BMW motorcycles have won this event 6 times.
 Tour De Corse – The BMW M3 - E30 won this event in 1987

Environmental record

The company is a charter member of the U.S. Environmental Protection Agency's (EPA)
National Environmental Achievement Track, which recognizes companies for their
environmental stewardship and performance. It is also a member of the South Carolina
Environmental Excellence Program and is on the Dow Jones Sustainability Group Index,
which rates environmentally friendly companies. BMW has taken measures to reduce the
impact the company has on the environment. It is trying to design less-polluting cars by
making existing models more efficient, as well as developing environmentally friendly fuels
for future vehicles. Possibilities include: electric power, hybrid power (combustion, engines
and electric motors)hydrogen engines. BMW offers 49 models with EU5/6 emissions norm
and nearly 20 models with CO2 output less than 140 g/km, which puts it on the lowest tax
group and therefore could provide the future owner with eco-bonus offered from some
European states.

However, there have been some criticisms directed at BMW, and in particular, accusations
of greenwash in reference to their BMW Hydrogen 7. Some critics claim that the emissions
produced during hydrogen fuel production outweigh the reduction of tailpipe emissions, and
that the Hydrogen 7 is a distraction from more immediate, practical solutions for car
pollution.

Bicycles

BMW has created a range of high-end bicycles sold online and through dealerships. They
range from the Kid's Bike to the EUR 4,499 Enduro Bike. In the United States, only the
Cruise Bike and Kid's Bike models are sold.

BMW nomenclature

BMW vehicles follow a certain nomenclature; usually a 3 digit number is followed by 1 or 2

letters. The first number represents the series number. The next two numbers traditionally
represent the engine displacement in cubic centimeters divided by 100 A similar
nomenclature is used by BMW Motorrad for their motorcycles.

The system of letters can be used in combination, and is as follows:

 A = automatic transmission
 C = coupé on E46 model
 c = cabriolet
 d = diesel†
 e = eta (efficient economy, from the Greek letter 'η')
 g = compressed natural gas/CNG
 h = hydrogen
 i = fuel-injected
 L = long wheelbase
 s = sport, also means "2 dr" on E36 model††
 sDrive = rear wheel drive
 T = touring (wagon/estate)
 Ti = hatchback
 x / xDrive = BMW xDrive all wheel drive
†
historic nomenclature indicating "td" refers to "Turbo Diesel", not a diesel hatchback or
touring model (524td, 525td)
††
typically includes sport seats, spoiler, aerodynamic body kit, upgraded wheels, etc.
For example, a BMW 760iL is a fuel-injected 7 Series with a long wheelbase and 6.0 liters of
displacement.

However, there are exceptions. The BMW 125i/128i is a 3.0 naturally-aspirated engine, not a
2500cc or 2800cc engine as the series designation number would lead one to believe. The
2007 BMW 328i is a 3 Series that has a 3.0 liter engine. The E36 and E46 323i and E39 523i
had 2.5 liter engines. The E36 318i made after 1996 has a 1.9L engine (M44) as opposed to
the 1.8L (M42) used in the 92–95 models. The 2007 BMW 335i also has a 3.0 liter engine;
however it is twin-turbocharged, which is not identified by the nomenclature.

The 'M' – for Motorsport – identifies the vehicle as a high-performance model of a particular
series (e.g. M3, M5, M6, etc). For example, the M6 is the highest performing vehicle in the 6
Series lineup. Although 'M' cars should be separated into their respective series platforms, it
is very common to see 'M' cars grouped together as its own series.

When 'L' supersedes the series number (e.g. L6, L7, etc) it identifies the vehicle as a special
luxury variant, featuring extended leather and special interior appointments. The L7 is based
on the E23 and E38, and the L6 is based on the E24.

When 'X' is capitalized and supersedes the series number (e.g. X3, X5, etc.) it identifies the
vehicle as one of BMW's Sports Activity Vehicles (SAV), featuring BMW's xDrive.

The 'Z' identifies the vehicle as a two seat roadster (e.g. Z1, Z3, Z4, etc). 'M' variants of 'Z'
models have the 'M' as a suffix or prefix, depending on country of sale (e.g. 'Z4 M' is 'M
Roadster' in Canada).

Previous X & Z vehicles had 'i' or 'si' following the engine displacement number (denoted in
liters). BMW is now globally standardizing this nomenclature on X & Z vehicles by using
'sDrive' or 'xDrive' (simply meaning rear or all wheel drive, respectively) followed by two
numbers which vaguely represent the vehicle's engine (e.g. Z4 sDrive35i is a rear wheel drive
Z4 roadster with a 3.0L twin-turbo fuel-injected engine).
 Community

BMW logo sign in Düsseldorf

From the summer of 2001 until October, 2005, BMW hosted the "BMW Films". Archived
from the original on 2007-09-27. website, showcasing sporty models being driven to
extremes. These videos are still popular within the enthusiast community and proved to be a
ground-breaking online advertising campaign.

Annually since 1999, BMW enthusiasts have met in Santa Barbara, CA to attend Bimmerfest.
One of the largest brand-specific gatherings in the U.S., over 3,000 people attended in 2006,
and over 1,000 BMW cars were present. In 2007, the event was held on May 5.

BMW slang

The initials BMW are pronounced [beː ɛm ˈveː] in German. The model series are referred to
as "Einser" ("One-er" for 1 series), "Dreier" ("Three-er" for 3 series), "Fünfer" ("Five-er" for
the 5 series), "Sechser" ("Six-er" for the 6 series), "Siebener" ("Seven-er" for the 7 series).
These are not actually slang, but are the normal way that such letters and numbers are
pronounced in GermanThe English slang terms Beemer, Bimmer and Bee-em are variously
used for BMWs of all kinds, cars, and motorcycles.

In the US, specialists have been at pains to prescribe that a distinction must be made between
using Beemer exclusively to describe BMW motorcycles, and using Bimmer only to refer to
BMW cars, in the manner of a "true aficionado"and avoid appearing to be "uninitiated." The
Canadian Globe and Mail prefers Bimmer and calls Beemer a "yuppie abomination," while
the Tacoma News Tribune says it is a distinction made by "auto snobs." Using the wrong
slang risks offending BMW enthusiasts. An editor of Business Week is satisfied that the
question is resolved in favor of Bimmer by noting that a Google search yields 10 times as
many hits compared to "Beemer."

The arts

1975 BMW 3.0CSL painted by Alexander Calder.

Manufacturers employ designers for their cars, but BMW has made efforts to gain
recognition for exceptional contributions to and support of the arts, including art beyond
motor vehicle design. These efforts typically overlap or complement BMW's marketing and
branding campaigns. Theheadquarters building, designed in 1972 by Karl Schwanzer has
become a European icon, and artist Gerhard Richter created his Red, Yellow, Blue series of
paintings for the building's lobby. In 1975, Alexander Calder was commissioned to paint
the 3.0CSL driven by Hervé Poulain at the 24 Hours of Le Mans. This led to more BMW Art
Cars, painted by artists including David Hockney, Jenny Holzer, Roy Lichtenstein, and
others. The cars, currently numbering 16, have been shown at the Louvre, Guggenheim
Museum Bilbao, and, in 2009, at the Los Angeles County Museum of Art and New
York's Grand Central Terminal. BMW was the principal sponsor of the 1998 The Art of the
Motorcycle exhibition at the Solomon R. Guggenheim Museum and other Guggenheim
museums, though the financial relationship between BMW and the Guggenheim was
criticized in many quarters.
The 2006 "BMW Performance Series" was a marketing event geared to attract black car
buyers, and featured the "BMW Pop-Jazz Live Series," a tour headlined by jazz musician
Mike Phillips, and the "BMW Blackfilms.com Film Series" highlighting black filmmakers.
April Fools

BMW has gathered quite a reputation over the years for it's April Fools pranks, which are
printed in the British press every year. In 2010, they ran an advert announcing that you would
be able to order your BMW with different coloured badges to show your affilation with the
political party you supported.

Overseas subsidiaries

South Africa
BMWs have been assembled in South Africa since 1968 when Praetor Monteerders' plant
was opened in Rosslyn, near Pretoria. BMW initially bought shares in the company, before
fully acquiring it in 1975 in so doing, the company became BMW South Africa, the first
wholly-owned subsidiary of BMW to be established outside Germany. Three unique models
that BMW Motorsport created for the South African market were the E23 M745i (1983),
which used the M88 engine from the BMW M1, the BMW 333i (1986), which added a 6-
cylinder 3.2 litreM30 engine to the E30 and the E30 BMW 325is (1989) which was powered
by an Alpina-derived 2.7 litre engine.

Unlike U.S. manufacturers, such as Ford and GM, which divested from the country in the
1980s, BMW retained full ownership of its operations in South Africa.

Following the end of apartheid in 1994, and the lowering of import tariffs, BMW South
Africa ended local production of the 5-Series and 7-Series, in order to concentrate on
production of the 3-Series for the export market. South African–built BMWs are now
exported to right hand drive markets including Japan, Australia, New Zealand, the United
Kingdom, Singapore, and Hong Kong, as well as Sub-Saharan Africa. Since 1997, BMW
South Africa has produced vehicles in left hand drive for export to Taiwan, the United States
and Iran, as well as South America.

BMW's with a VIN number starting with "NC0" are manufactured in South Africa.
United States

BMW Spartanburg factory

BMW Manufacturing Co has been manufacturing the X5 and, more recently, the X6
in Greer near Spartanburg, South Carolina, USA. The smaller X3 is slated to begin
production in Spartanburg in 2009–2010.
BMW's with a VIN number starting with "4US" are manufactured in Spartanburg.

India
BMW India was established in 2006 as a sales subsidiary in Gurgaon (National Capital
Region). A state-of-the-art assembly plant for BMW 3 and 5 Series started operation in early
2007 in Chennai. Construction of the plant started in January 2006 with an initial investment
of more than one billion Indian Rupees. The plant started operation in the first quarter of
2007 and produces the different variants of BMW 3 Series and BMW 5 Series.

China
Signing a deal in 2003 for the production of sedans in China, May 2004 saw the opening of a
factory in the North-eastern city of Shenyang where Brilliance Automotive produces BMW-
branded automobiles in a joint venture with the German company.
Canada
In October 2008, BMW Group Canada was named one of Greater Toronto's Top
Employers by Mediacorp Canada Inc., which was announced by the Toronto Star newspaper.

Austria
The BMW X3 is also made by Magna Steyr, a subsidiary of a Canadian company, in Graz,
Austria under license from BMW.

Egypt
Bavarian Auto Group is a multinational group of companies established in March 2003 when
it was appointed as the sole importer of BMW and MINI in Egypt, with exclusive rights for
import, assembly, distribution, sales and after-sales support of BMW products in Egypt.Since
that date, BAG invested a total amount of 100 Million US Dollars distributed on 7 companies
and 11 premises in addition to 3 stores.

Currently, the facility enables Bavarian Auto the opportunity to offer a full range of locally
assembled models; including the BMW 3 Series, 5 Series, 7 Series and X3 which. In
combination with a new range of imported models; including the BMW 1 Series, 6 Series,
X5, X6 and various MINI models.
About BMW Financial Services

BMW Financial Services offers customers a variety of

flexible lease and retail financing options to suit their
needs for any of BMW's new or pre-owned cars,
motorcycles or SAV's. Through BMW Bank of North
America, a subsidiary based in Salt Lake City, Utah, BMW FS offers BMW Personal
Banking and credit card services. And in conjunction with Liberty Mutual Insurance
Company, BMW FS offers a comprehensive personal insurance program.

Corporate History
BMW Financial Services was established in 1993 to support the U.S. sales and marketing
efforts of BMW of North America by offering a wide range of leasing, retail, and wholesale
financing services to BMW customers. With total assets in excess of $24 Billion, BMW FS
is a leader in innovation and customer service in the automotive industry
.

Organization and Locations

BMW Financial Services is one of 26 worldwide subsidiaries of the Financial Services
Division of BMW AG, headquartered in Munich, Germany. We serve our customers in the
U.S. and Canada from our National Customer Service Center in Hilliard, Ohio, and our
administrative offices in Woodcliff Lake, New Jersey. Our four regional offices are located
in Montvale, New Jersey, Schaumburg, Illinois, Ontario, California, and Atlanta, Georgia. In
addition, the BMW Bank of North America (an Industrial Bank) is located in Salt Lake City,
Utah.
 Mission Statement Of Bmw

Mission, Vision, Values

We support the sale of BMW Group products through financial products and services offered
to consumers and to BMW centers and BMW Motorcycle centers throughout North
America. In addition, we enhance the BMW customer relationship by offering
comprehensive banking and insurance services tailored for the BMW driver. Our values are
very important to us because they shape the personality of our organization. They affect the
way we work, the services and products we provide, and our support of our people and their
communities.
The core values of BMW Financial Services are:

 Uniqueness through diversity

 Leadership
 Teamwork
 Involvement in community
 Mutual respect
 Associate growth & development
 Taking risks
 Excellence through quality & innovation
 Courteous
 FAir
 Responsive
 Efficient
The purpose, mission and future of Bill De Fouw BMWis to provide quality Sales, Service
and Transportation Needs for our customers.This is and will be accomplished through a
dedicated team of employees whose number one goal is customer satisfaction along with a
Management Team whose responsiblity is to ensure Employee Satisfaction, and Customer
Enthusiasm. The end result will be an organization within our Community that will
represent its manufacturers with pride, integrity, and world class result.

Mission Statement and Vision of the Nike Center

MISSION STATEMENT To provide programs, services, and supports for eligible residents
of Clinton County which will assist them to live, work, learn, and play in their community.
Most agencies and businesses not only have a mission statement, but also a VISION
STATEMENT. We took a different path in regards to our vision statement. Our vision for
this agency is comprehensive and embraced by all members of the Leadership Team, who, in
turn, exemplify by example our CORE BELIEFS and VALUES.
It is our COMMITMENT STATEMENT OF PRINCIPLES We, as members of the
Leadership Team of the Clinton County Board of MRDD, Nike Center, are committed to
excellence. We demonstrate this commitment by our services to all individuals, families,
staff members, providers, board members and the taxpaying public and by exceeding their
expectations; reflecting “who we are” at the Nike Center. The Leadership Team will strive
to generate an atmosphere that is inviting and pleasant and one that is conducive to
creativity, professional learning, and caring. We believe we are responsible for improving
the quality of life for the community of individuals we serve as they journey with us. Our
belief is in making a difference through our integrity, honesty, efficiency and sincerity in our
day-to-day operations.
 Chapter-2

LITERATURE REVIEW
 About BMW India

Headquartered in Chennai , BMW India is a 100% subsidiary of the BMW. The initial
investment in India is 1.1 billion Indian Rupees.

The wide range of BMW activities in India include the establishment of a production plant in
Chennai (Tamil Nadu) and development of a dealer organization across major metropolitan
centers of the country.

In medium term, BMW India has employed around 200 people; up to 600 additional jobs
have been created in the dealer and service network.

On 29 March 2007, BMW India officially opened its production plant in Chennai. The BMW
Plant Chennai produces the BMW 3 Series and BMW 5 Series Sedans in petrol and diesel
variants and has a capacity to produce 3,000 units per year on a single shift basis.

Sales and Service Network

BMW India is present at 16 locations in the Indian market; BMW Studio (New Delhi),
Deutschen Motoren (New Delhi), Deutschen Motoren (West Delhi), Bird Automotive
(Gurgaon, NCR), Navnit Motors (Mumbai), Infinity Cars (South Mumbai), Krishna
Automobiles (Chandigarh), Navnit Motors (Bangalore), Kun Exclusive (Hyderabad), Kun
Exclusive (Chennai), Bavaria Motors (Pune), OSL Prestige (Kolkata), Parsoli Motors
(Ahmedabad), Platino Classic (Kochi), Kun Exclusive (Coimbatore) and Sanghi Classic
(Jaipur)

Assembled/Manufactured Locally
  BMW 3 Series (330i, 320i, 320d Corporate Edition and 320d Highline)
 BMW 5 Series (525i, 530i, 520d, 530d and 530d Highline)

Imported

 BMW 6 Series (650i Coupé and 650i Convertible)

 BMW 7 Series (740Li, 750Li, 760Li and 730Ld)
 BMW X3 (X3 xDrive25i, X3 xDrive20d)
 BMW X5 (X5 xDrive48i, X5 xDrive30d and X5 xDrive30d Highline)
 BMW X6 (X6 xDrive50i and X6 xDrive30d)
 BMW M3 (Coupé and Convertible)
 BMW M5
 BMW M6 (Coupé and Convertible)

International Purchase Office

BMW India has also established an International Purchasing Office (IPO) at its Headquarters
in Gurgaon. The IPO will focus on the development of exports from India to the BMW
Group International Production Network and there work towards increasing the sourcing
share from India over the next years. The activities include the identification and assessment
of potential suppliers taking into account BMW’s requirements for quality, technology and
logistics. The IPO will explore procurement of production material (components) as well as
IT and Engineering Services.
BMW Financial Services India

BMW Group will introduce BMW Financial Services India as a new business entity in India
by the mid of 2010 and will be headquartered in Gurgaon (National Capital Region).

BMW Financial Services India is seeking a license to operate as a Non-Banking Finance

Company (NBFC) in India to offer financing for BMW customers and multi make
customers, Financing for Fleet Owners and Commercial Financing for BMW Dealerships
and multi make dealerships.

BMW Financial Services India will continue to offer Insurance to its customers through its
cooperation partners. BMW Financial Services has been operating in India as a part of BMW
India with its three business lines: Retail finance, Commercial finance for the BMW India
Dealerships and Insurance through cooperation partners for BMW customers.

BMW Financial Services India will be a subsidiary of BMW Group, headquartered in

Munich, Germany. BMW Financial Services was established in 1993 and presently has
subsidiaries in 31 countries besides India and is active in more than 60 countries.
 BMW motorcycle's Indian connection

The German luxury car and motorcycle maker, BMW already has a presence in the Indian car
market. There are no concrete plans for re-entering the country’s two-wheeler segment yet.
However, the automobile giant is now looking to source parts for engines and chassis for its
high end two-wheelers from India. BMW had been sourcing parts like handle bars and die
cast from here. Now, they are exploring to source other components as well.
BMW Board Member (International Parts Sourcing) Herbert Diess stated that between 2006
and 2007, the company had set up an International Purchasing Office (IPO), with a current
strength five people in India and they have been running a pilot programme to increase
component sourcing from India. BMW has started sourcing parts from India in a small
quantity for cars as well and has been closely working with vendors such as Mico Bosch and
Conti.
BMW had entered the Indian two-wheeler market ages ago with the Hero Group, but the
attempt failed miserably. With companies like Yamaha already selling their flagship products
and other manufacturers ready to join the race too, why BMW is still on the back-foot is hard
to understand. Diess had commented earlier that the Indian market is primarily for
commuters, and it is true. But surely, there will still be sizeable number of bikers who would
opt for a bike with the blue and white logo. We have our fingers crossed!
 BMW motorcycles / bikes model Series

The BMW produces it´s motorcycles in so called series. Each of them is identified by a single
digit or character.

BMW K series

The K series bikes are designed as a Super Sport

motorcycle.
All three new bikes in this series are based on the in-
line four-cylinder engine. Each model has a different
engine power. Also known as the "Flying Brick"
because of it's square design.

BMW R series

The R series has got so called boxer engine with

horizontally opposed two piston design. It has got oil-
cooled heads
BMW F series

An entry level BMW motorcycle suited for cross

country.

BMW G series

An entry level BMW motorcycle suited for cross

country.

BMW services
Perfection.

You can fully rely on BMW Service. Because only specialists with many years of expertise
are assigned to your BMW. Their every movement has been perfected just as well as Original
BMW Parts are precisely matched to your car.

Individuality.

At BMW Service the prime focus is on the driver’s individual requirements. With Original
BMW Accessories, your BMW gets your personal touch - at any time. And BMW Service
Inclusive offers you an attractive maintenance programme at a fixed price with a choice of
different packages.

Innovations.

With BMW Service, you're always up to date. The comprehensive network between your car,
your BMW Service partner and BMW’s own Research and Innovation Centre supplies the
decisive lead when innovative service expertise is concerned. BMW Service is perpetually in
motion for your BMW.
 Chapter -3

RESEARCH METHODOLOGY
 PROJECT FLOW CHART-

PRELIMINARY SURVEY
↓
DRAFTING A QUESTIONNAIRE
↓
SMALL-SCALE SAMPLE STUDY
↓
ANALYSIS & INTERPRETATION
↓
RECOMMENDATION & CONCLUSION
 RESEARCH METHODOLOGY

Nature of the Study

The study undertaken is descriptive in nature, which tends to use data based on interaction
with the customers/distributor to find out whether BMW has to launch its super bikes in India
or not.

Sample size:
100 customers

Data Sources:

The research requires primary as well as secondary type of data.

Primary Data Sources: These data are collected from individuals who are using the
product, walk-in-clients & talking to them through phone.

Secondary Data Sources: These data sources are company records, websites,amfi study
books and articles from newspaper and journals.
 Demographic Overview – India

India, officially the Republic of India, is a leading country in South Asia. It is the seventh-
largest country by geographical area, the second-most populous country, and the most
populous democracy in the world. Bounded by the Indian Ocean on the south, the Arabian
Sea on the west, and the Bay of Bengal on the east, India has a coastline of 7,517 kilometers
(4,700 miles). It is bordered by Pakistan to the west; China, Nepal, and Bhutan to the north;
and Bangladesh and Myanmar to the east. India is in the vicinity of Sri Lanka, and the
Maldives in the Indian Ocean.

Home to the Indus Valley Civilization and a region of historic trade routes and vast empires,
the Indian subcontinent was identified with its commercial and cultural wealth for much of its
long history. Four major religions, Hinduism, Buddhism, Jainism and Sikhism originated
here, while Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium
and shaped the region's diverse culture. Gradually annexed by the British East India
Company from the early eighteenth century and colonized by the United Kingdom from the
mid-nineteenth century, India became an independent nation in 1947 after a struggle for
independence that was marked by widespread non-violent resistance.

India is a republic consisting of 28 states and 7 union territories with a parliamentary system
of democracy. It has the world's twelfth largest economy at market exchange rates and the
fourth largest in purchasing power. Economic reforms since 1991 have transformed it into
one of the fastest growing economies; however, it still suffers from high levels of poverty,
illiteracy, disease, and malnutrition. A pluralistic, multilingual, and multiethnic society, India
is also home to a diversity of wildlife in a variety of protected habitats.
With an estimated population of 1.17 billion, India is the world's second most populous
country. The last 50 years have seen a rapid increase in population due to medical advances
and massive increase in agricultural productivity through the green revolution. India's
urban population increased 11-fold during the twentieth century and is increasingly
concentrated in large cities. By 2001 there were 35, 1 million-plus population cities in India.
India’s larger cities with a population of over 10 million each are the metros - Mumbai, Delhi
and Kolkata.
Population of India and profiles

The official Census of the country is done once in 10 years. The last census was done in
2001. Quick estimates are however derived every year for population and its spread.

Estimated Data (2008-2009)*

Population: 1,166,079,217 (2009 est.)

Growth rate: 1.548% (2009 est.)

Age structure:

0-14 years: 31.1% (male 190,075,426/female 172,799,553) (2009 est.)

15-64 years: 63.6% (male 381,446,079/female 359,802,209) (2009 est.)

65-over: 5.3% (male 29,364,920/female 32,591,030) (2009 est.)

Sex ratio:

At birth: 1.12 male(s)/female (2009)

Under 15: 1.10 male(s)/female (2009)

15-64 years: 1.06 male(s)/female (2009)

65-over: 0.90 male(s)/female (2009)

Percent of the population
22% (2006 est.)
under the poverty line
Unemployment Rate 7.80%

Net migration rate -0.05 migrant(s)/1,000 population (2007 est.)

Following is the data based on 2001 census (Census of India 2001: www.censusindia.gov.in)
Sex wise breakup
Total Persons Males Females
Total 1,02,86,10,328 53,21,56,772 49,64,53,556
Rural 74,24,90,639 38,16,02,674 36,08,87,965
Urban 28,61,19,689 15,05,54,098 13,55,65,591
 Age group wise breakup

Total Urban
Persons Males Females Persons Males Females
1 2 3 4 8 9 10
All ages 1028610328 532156772 496453556 286119689 150554098 135565591
0-4 110447164 57119612 53327552 25338754 13262414 12076340
5-9 128316790 66734833 61581957 29860545 15640135 14220410
10-14 124846858 65632877 59213981 32464536 17030132 15434404
15-19 100215890 53939991 46275899 30154067 16191573 13962494
20-24 89764132 46321150 43442982 28365228 15193668 13171560
25-29 83422393 41557546 41864847 25737253 13180373 12556880
30-34 74274044 37361916 36912128 22445165 11673137 10772028
35-39 70574085 36038727 34535358 21615541 11157103 10458438
40-44 55738297 29878715 25859582 17173126 9458276 7714850
45-49 47408976 24867886 22541090 14453974 7844213 6609761
50-54 36587559 19851608 16735951 10809961 6038917 4771044
55-59 27653347 13583022 14070325 7682278 4010268 3672010
60-64 27516779 13586347 13930432 6864810 3439621 3425189
65-69 19806955 9472103 10334852 4990199 2401397 2588802
70-74 14708644 7527688 7180956 3579168 1780696 1798472
75-79 6551225 3263209 3288016 1721085 851088 869997
80+ 8038718 3918980 4119738 2022345 935920 1086425
Age
not 2738472 1500562 1237910 841654 465167 376487
stated
State wise Population and Literacy Breakup

Population Literacy rate (in %)

State / UT Female
Persons Males Females Persons Males
s
1,02,87,37,43 49,65,14,34
India@ 53,22,23,090 64.8 75.3 53.7
6 6
Jammu &
1,01,43,700 53,60,926 47,82,774 55.5 66.6 43.0
Kashmir
Himachal
60,77,900 30,87,940 29,89,960 76.5 85.3 67.4
Pradesh
Punjab 2,43,58,999 1,29,85,045 1,13,73,954 69.7 75.2 63.4
Chandigarh 9,00,635 5,06,938 3,93,697 81.9 86.1 76.5
Uttaranchal 84,89,349 43,25,924 41,63,425 71.6 83.3 59.6
Haryana 2,11,44,564 1,13,63,953 97,80,611 67.9 78.5 55.7
Delhi 1,38,50,507 76,07,234 62,43,273 81.7 87.3 74.7
Rajasthan 5,65,07,188 2,94,20,011 2,70,87,177 60.4 75.7 43.9
Uttar
16,61,97,921 8,75,65,369 7,86,32,552 56.3 68.8 42.2
Pradesh
Bihar 8,29,98,509 4,32,43,795 3,97,54,714 47.0 59.7 33.1
Sikkim 5,40,851 2,88,484 2,52,367 68.8 76.0 60.4
Arunachal
10,97,968 5,79,941 5,18,027 54.3 63.8 43.5
Pradesh
Nagaland 19,90,036 10,47,141 9,42,895 66.6 71.2 61.5
Manipur@ 21,66,788 10,95,634 10,71,154 70.5 80.3 60.5
Mizoram 8,88,573 4,59,109 4,29,464 88.8 90.7 86.7
Tripura 31,99,203 16,42,225 15,56,978 73.2 81.0 64.9
Meghalaya 23,18,822 11,76,087 11,42,735 62.6 65.4 59.6
Assam 2,66,55,528 1,37,77,037 1,28,78,491 63.3 71.3 54.6
West
8,01,76,197 4,14,65,985 3,87,10,212 68.6 77.0 59.6
Bengal
 Population Literacy rate (in %)
State / UT Female
Persons Males Females Persons Males
s
Jharkhand 2,69,45,829 1,38,85,037 1,30,60,792 53.6 67.3 38.9
Orissa 3,68,04,660 1,86,60,570 1,81,44,090 63.1 75.3 50.5
Chhattisgar
2,08,33,803 1,04,74,218 1,03,59,585 64.7 77.4 51.9
h
Madhya
6,03,48,023 3,14,43,652 2,89,04,371 63.7 76.1 50.3
Pradesh
Gujarat 5,06,71,017 2,63,85,577 2,42,85,440 69.1 79.7 57.8
Daman &
1,58,204 92,512 65,692 78.2 86.8 65.6
Diu
Dadra &
Nagar 2,20,490 1,21,666 98,824 57.6 71.2 40.2
Haveli
Maharashtra 9,68,78,627 5,04,00,596 4,64,78,031 76.9 86.0 67.0
Andhra
7,62,10,007 3,85,27,413 3,76,82,594 60.5 70.3 50.4
Pradesh
Karnataka 5,28,50,562 2,68,98,918 2,59,51,644 66.6 76.1 56.9
Goa 13,47,668 6,87,248 6,60,420 82.0 88.4 75.4
Lakshadwee
60,650 31,131 29,519 86.7 92.5 80.5
p
Kerala 3,18,41,374 1,54,68,614 1,63,72,760 90.9 94.2 87.7
Tamil Nadu 6,24,05,679 3,14,00,909 3,10,04,770 73.5 82.4 64.4
Pondicherry 9,74,345 4,86,961 4,87,384 81.2 88.6 73.9
Andaman &
Nicobar 3,56,152 1,92,972 1,63,180 81.3 86.3 75.2
Islands
 India – GDP and Growth

India’s GDP was $ 1.22 trillion (not adjusted for inflation as on 2008) as per World Bank
World Development Indicators Report. The table below shows the GDP growth trends from
1988-1989. It can be clearly seen that the GDP Growth during 1988-89 period was 10%.
After then on it has remained below 10% due to the following events

Period GDP Crisis

1) Period 1991-92 - 1.4 Balance of payments Crisis
2) Period 1997-98 - 4.3 Asian Crisis
3) Period 2000-01 - 4.4 Dotcom Burst
4) Period 2001-02 - 5.8 9-11 Incident
5) Period 2002-03 - 3.8 Agriculture Shock
India had been growing robustly at an annual average rate of 8.8 per cent for the period
between (2003-04 to 2007-08). The overall growth of GDP at factor cost at constant prices in
2008-09, as per revised estimates released by the Central Statistical Organization (CSO)
(May 29, 2009) was 6.7 per cent. This is lower than the 7 per cent projection in the Mid-Year
Review 2008-09 (Economic Division, Department of Economic Affairs (DEA), December
2008) and the advance estimate of 7.1 per cent, released subsequently by CSO in February
2009. With the CSO drastically reducing their estimate of GDP from agriculture (based on
third advance estimates), and given that the DEA’s 7 per cent estimate assumed normal
agricultural growth, it would have had to be adjusted for any shortfall. The growth of GDP at
factor cost (at constant 1999-2000 prices) at 6.7 per cent in 2008-09 nevertheless represents a
deceleration from high growth of 9.0 per cent and 9.7 per cent in 2007-08 and 2006-
07respectively.The deceleration of growth in 2008-09 was spread across all sectors except
mining & quarrying and community, social and personal services. The growth in agriculture
and allied activities decelerated from 4.9 per cent in 2007-08 to 1.6 per cent in 2008-09,
mainly on account of the high base effect of 2007-08 and due to a fall in the production of
non-food crops including oilseeds, cotton, sugarcane and jute. The production of wheat was
also marginally lower than in 2007-08.

The manufacturing, electricity and construction sectors decelerated to 2.4, 3.4 and 7.2 per
cent respectively during 2008-09 from 8.2, 5.3 and 10.1 per cent respectively in 2007-08. The
Slowdown in manufacturing could be attributed to the combined impact of a fall in
exporfollowed by a decline in domestic demand, especially in the second half of the year.
The rise in the cost of inputs during the beginning of the year and the cost of credit (through
most of the year) reduced manufacturing margins and profitability. The growth in production
sectors, especially manufacturing, was adversely affected by the impact of the global
recession and associated factors. The electricity sector continued to be hampered by capacity
constraints and the availability of coal, particularly during the first half of the year. As long as
the coasector remains a public sector monopoly (the only remaining nationalized sector), it
could remain a bottleneck for accelerated development of the power sector. The construction
industry consists of different segments like housing, infrastructure, industrial construction,
commercial real estate, etc. While the industry went through a boom phase with growth as
 high as 16.2 per cent in 2005-06 and continued to grow thereafter (albeit with moderation),
the increase in the costs of construction due to a rise in the prices of inputs like steel and
cement and interest costs had started impacting the industry. In certain segments of the
industry, there was an excessive price build up in the form of a speculative bubble, related to
limited supply of urban land for those segments. The rise in interest rates and the slowdown
in housing loans also moderated demand. The double squeeze on the costs, as well as the
demand side, and the fall in the liquidity in mid-September 2008 precipitated a sharp
downturn in this sector. There followed a period (in the second half of the year) when
demand had already moderated, but costs remained high. The higher growth in community,
social and personal services during 2008-09 was mainly due to an expansionary fiscal policy
that was reflected in the demand side of GDP as higher growth of Government consumption
expenditure.

Rate of Growth at factor cost at 1999-2000 prices(per cent)

2008-
2003-04 2004-05 2005-06 2006-07 2007-08
09
Agriculture, forestry and fishing 10 0 5.8 4 4.9 1.6
Mining and Quarrying 3.1 8.2 4.9 8.8 3.3 3.6
Manufacturing 6.6 8.7 9.1 11.8 8.2 2.4

Electricity, gas and water supply 4.8 7.9 5.1 5.3 5.3 3.4

Construction 12 16.1 16.2 11.8 10.1 7.2

Trade, hotels and restaurants 10.1 7.7 10.3 10.4 10.1 *

Transport, storage and communication 15.3 15.6 14.9 16.3 15.5 *

Financing, insurance, real estate &

5.6 8.7 11.4 13.8 11.7 7.8
business services
Community, Social and personal services 5.4 6.8 7.1 5.7 6.8 13.1

Total GDP at factor cost 8.5 7.5 9.5 9.7 9 6.7

Source: Central Statistical Organisation
* Trade, hotels and Restaurants, transport and communication (together) grew at 9%, 2008-0
 Changing Profiles of Indian customers

Income classifications by themselves do not reveal much about the market behavior and
purchasing power, as such. To provide a more realistic picture of the consumption behavior,
the National Council for Applied Economic Research (NCAER) has released a new
classification of the market by ownership and propensity to consume various consumer
goods. Interestingly the NCAER did not specifically put any of these categories under income
heads – in fact they went to the extent of confirming that the classes are not income
dependent – they are more psychographic dependent. It was argued by NCAER that maybe

an older person having a high income may spend less on non essential products than say a
younger climber!

The Rich Who buy the most expensive consumer products

The Consuming Classes Who buy the bulk of all consumer goods marketed in India
Who own some durables especially, televisions and small home
The Climbers
appliances
Who possess the most basic durables such as transistor radios,
The Aspirants
bicycles, and aspire for the rest
The Destitute Who are generally not consumers of manufactured goods

The superimposition of Income on the grid is an attempt to give a handle on the income
profiles in an aggregate sense. The table below gives the shifts in the categories expected by
 the year end. It may be interesting to note the relative reduction in the aspirants and destitute
categories as a result of overall economic development
.
%
Consumer classes (Annual income 1996
2001 2007 change
in $) millions
(approx)
The Rich ($ 5k and above) 1.2 2 6.2 416%
The Consuming Class ($ 1.5k - 5k ) 32.5 54.6 90.9 179%
The Climbers ($ 0.75k - 1.5k) 54.1 71.6 74.1 37%
The Aspirants ($ 0.375k - 0.750k) 44 28.1 15.3 -65%
The Destitute (Less than 0.375k) 33 23.4 12.8 -61%
Source NCAER

It is evident that the category of target customer is growing at a fast pace and category shifts
on a national level are favourable for the product category of toys.

Psychographics of the Indian customer

The changing pattern of share of wallet reveals that the average India customer is willing to
spend significantly higher on “non essentials” like:
Commodity 2002-03 2003-04 2004-05
Book & Music 4.7% 5.2% 8.0%
Eating Out 8.6% 7.4% 11.0%
Movie & Theatre 2.7% 3.1% 5.0%
Vacation 2.4% 2.7% 4.0%
 Movies and
Theatre
Accessories
0.5%
2003-04
3.1% Books and
Vacation Footwear Music
Entertainment
2.7% 1.5% 5.2%
1.4%
Consumer Eating Out Personal Care
Durables 7.4% Grocery Items
4.5% 28.0% 5.2%

Savings and
Investments
2.8%
Payment for
Clothing Gifts
Household Help
4.7% 6.2%
21.0%
Internet Home
Connection Textiles
1.1%
Mobile 0.6%
Phone Computers
1.7% 1.5% Furniture
1.0%
Psychographic profile of customer
 Purchasing Power

Economic indicators
2006 2007 2008 2009 2010
GDP Measured at
Purchasing Power
27,83,397.37 31,20,021.14 33,41,338.61 36,30,359.36 39,24,782.88
Parity (million
international $)
Real GDP Growth
9.8 9.36 7.41 5.6 7.7
(% growth)
Inflation (%
6.17 6.39 8.32 10.83 8.41
growth)
Consumer
Expenditure (US$ 5,01,477.25 6,17,942.52 6,58,790.84 7,04,029.47 7,64,390.05
million)
Annual Gross
Income (US$ 7,54,849.44 9,46,420.51 10,12,168.00 10,24,791.56 10,83,677.00
million)
Annual Disposable
Income (US$ 7,33,601.07 9,08,057.36 9,67,743.25 9,80,725.06 10,39,894.00
million)
From the above chart it can clearly see that the Purchasing power of Indian citizen has been
increasing consistently, the GDP is also showing the same response, but there was a slight
downfall during 2009 due to global recession which didn’t had hard impact on the countries
economy. If inflation level is seen it can be said that there was a consistent growth till 2009
but it was controlled over a period of 1 year. During the past few years there is an increase in
income level of individual as more of MNCs are investing in the country leaving more of
currency to spend.

Lifestyle indicators
2006 2007 2008 2009 2010
Consumer
Expenditure on
180,813.56 220,071.21 230,100.09 242,863.78 262,207.83
Food (US$
million)
Internet Users
76,000.00 81,000.00 98,987.83 119,109.31 141,317.10
('000)
New Registrations
of Passenger Cars 1,311.10 1,606.10 1,669.20 1,697.14
('000)
 Chapter 3.0

Two Wheeler Market Aggregate Historical trend of 2

wheeler market in India:

The two-wheeler industry in India has grown rapidly in the country since the announcement
of the process of liberalization in 1991 by the then Finance Minister Dr. Manmohan Singh,
now Prime Minister of India.

Previously, there were only a handful of two-wheeler models available in the country.
Currently, India is the second largest producer of two-wheelers in the world. It stands
next only to China and Japan in terms of the number of two-wheelers produced and the sales
of two-wheelers respectively.
The trend of growing two-wheelers is due to a variety of facts peculiar to India. One of the
chief factors is poor public transport in many parts of India. Additionally, two-
wheelers offer a great deal of convenience and mobility for the Indian family.
A description of the evolution of the two wheeler industry in India is usefully split up into
five ten year periods. This division traces significant changes in economic policy making.
The first time-period, 1960-1969, was one during which the growth of the two-wheeler
industry was fostered through means like permitting foreign collaborations and phasing out.
The period 1970-1980 saw state controls, through the use of the licensing system and certain
regulatory acts over the economy, at their peak. During 1981-1990 significant reforms were
initiated in the country. The period 1991-1999 during which the reform process was
deepened. These reforms encompassed several areas like finance, trade, tax, industrial policy
etc. The final time-period covers the period 2000 onward in which adoption of advanced
technology and electrical operated two wheelers comes into existence.
a) 1960 – 1969

The automobile industry being classified as one of importance under the Industrial Policy
Resolution of 1948 was therefore controlled and regulated by the Government. In order to
encourage manufacturing, besides restricting import of complete vehicles, automobile
assembler firms were phased out by 1952 (Tariff Commission, 1968), and only
manufacturing firms allowed to continue. Production of automobiles was licensed, which
meant that a firm required a licensing approval in order to open a plant. It also meant that a
firm’s capacity of production was determined by the Government. During this period,
collaborations with foreign firms were encouraged.

b) 1970 – 1980

This was a period during which the overall growth rate of the two-wheeler industry was
high (around 15% per annum). Furthermore, the levels of restriction and control over the
industry were also high. The former was the result of the steep oil price hikes in 1974
following which two-wheelers became popular modes of personal transport because they
offered higher fuel efficiency over cars/jeeps. On the other hand, the introduction of
regulatory policies such as MRTP and FERA resulted in a controlled industry. The impact of
MRTP was limited as it affected only large firms like Bajaj Auto Ltd. whose growth rates
were curbed as they came under the purview of this Act. However, FERA had a more far-
reaching effect as it caused foreign investment in India to be restricted. In the motorcycle
segment FERA did not cause technological stagnation, as a consequence of which, new
products nor firms entered the market since this segment depended almost entirely on foreign
collaborations for technology. The scooter and moped segments on the other hand were
technologically more self-sufficient and thus there were two new entrants in the scooter
segment and three in the moped segment.
c) 1981 – 1990

The technological backwardness of the Indian two-wheeler industry was one of the reasons
for the initiation of reforms in 1981. Foreign collaborations were allowed for all two-
wheelers up to an engine capacity of 100 cc. This prompted a spate of new entries into the
industry the majority of which entered the motorcycle segment, bringing with them new
technology that resulted in more efficient production processes and products. The variety in
products available also improved after ‘broadbanding’ was allowed in the industry in 1985.
During 1974-79, sales of two-wheelers increased by 60%, while that of cars declined by 21%

and jeeps grew only by 11%. Indian motorcycles in the seventies had two major drawbacks
viz., low fuel-efficiency and high weight. Worldwide however, there was a trend towards
using high-strength, low-weight materials for various components which resulted in vehicles
that were compact and had lower weight. Since fuel-consumption of a two-wheeler depended
on its weight, lighter vehicles meant greater mileage. These drawbacks were overcome in the
eighties when foreign collaborations were once again allowed.This, coupled with the
announcement of the MES of production for the two wheeler industry, gave firms the

flexibility to choose an optimal product and capacity mix which could better incorporate
market demand into their production strategy and thereby improve their capacity utilization
and efficiency. These reforms had two major effects on the industry: First, licensed capacities
went up to 1.1 million units per annum overshooting the 0.675 million units per annum target
set in the Sixth Plan. Second, several existing but weaker players died out giving way to new
entrants and superior products.

d) 1991 – 1999
The reforms that began in the late seventies underwent their most significant change in 1991
through the liberalization of the economy. The two-wheeler industry was completely
deregulated. In the area of trade, several reforms were introduced with the goal of making
Indian exports competitive.

The two-wheeler industry in the nineties was characterized by an increase in the number of
brands available in the market. Fuel-efficiency improved by (60-100)% in the new vehicles.
In the seventies, motorcycle mileage was on an average between 25 to 50 kmpl (kilometre per
litre), which had now improved to 50 to 80 kmpl. For mopeds it improved from 50 kmpl to
80 kmpl. Output of the engines also increased from 3-4 HP to 10 HP per 100 cc.

In the two-wheeler industry, MES was pegged at 2, 00,000 units and 5, 00,000 units of
annual licensed capacity for non-exporting and exporting firms respectively (CMIE, 1990). In
the scooter segment, models with features like self-starter facility, automatic transmission
system, gear-less riding etc. were introduced that were traditionally not available in scooters.
In the motorcycle segment, the new 100 cc models compared well against the existing
heavier models of 250 cc, 350 cc etc. These were lighter and more fuel-efficient.

e) 2000 Onwards

In the two wheeler Industry sales picked up thereafter mainly on the strength of an increase in
the disposable income of middle-income salaried people (following the implementation of the
Fifth Pay Commission's recommendations), higher access to relatively inexpensive financing,
and increasing availability of fuel efficient two-wheeler models. Nevertheless, this
phenomenon proved short-lived and the two-wheeler sales declined marginally in FY2001.
This was followed by a revival in sales growth for the industry in FY2002. Although, the
overall two-wheeler sales increased in FY2002, the scooter and moped segments faced de-
growth. FY2003 also witnessed a healthy growth in overall two-wheeler sales led by higher
growth in motorcycles even as the sales of scooters and mopeds continued to decline. Healthy
growth in two-wheeler sales during FY2004 was led by growth in motorcycles even as the
scooters segment posted healthy growth while the mopeds continued to decline. Figure 1
presents the variations across various product sub-segments of the two-wheeler industry
between FY1995 and FY2004.The 2W industry had reported double-digit growth rates for six
consecutive years till 2006-07 on the back of rising disposable incomes in Tier 2 and 3 cities
and in rural areas, and the easy availability of consumer finance. However, 2007-08 saw a
volume decline following an increase in interest rates and a sudden reduction in the
availability of finance.

Within the 2W industry, the entry-segment of motorcycles was hit the hardest as financial
institutions tightened their credit norms due to relatively weaker credit profiles2 and the
higher proportion of financed purchases in this segment.

After the volume decline in 2007-08, 2W sales did show a revival in the first half (H1) of
2008-09, reporting a volume growth of 13.2% (y-o-y). However, the economic meltdown that
snowballed post-September 2008 dented consumer sentiment, causing a 7.4% decline in
volumes in H2, 2008-09 versus H1, 2008-09 (historically, the second half of a fiscal year
accounts for 52% of full-year sales).

Changing % of 2 wheeler market vis-à-vis overall automobile market-

 Structure of Indian Automobile Industry

Indian Automobile Industry

Three Wheelers Multi Utility Commercial Passenger Two Wheelers

Vehicles Vehicles Cars

Motor Cycles Scooters Mopeds

Passenger Goods
Carriers Carriers

2008-
Category 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
09
Two Wheelers 84,18,
50,76,221 56,22,741 65,29,829 76,08,697 84,66,666 80,26,681
Production 626
Overall
1,10,87,9 1,08,53,9 1,11,7
Automobile 62,79,967 72,43,564 84,67,853 97,43,503
97 30 5,479
Production
Changing % 81% 78% 77% 78% 76% 74% 75%
Qty. in Million No.

12,000,000 11,087,997
11,175,479

10,000,000 10,853,930
9,743,503

8,467,853 8,466,666 8,418,626

8,000,000 8,026,681
7,608,697
7,243,564
6,279,967 6,529,829
6,000,000 Two Wheelers
5,622,741
5,076,221 Production
4,000,000

Overall
2,000,000
Automobile
Production
0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Chapter 3.1

Two wheeler market segmentation

Segmentation between scooters and motorcycles:

Years 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Scooters 908268 825648 886295 922428 909051 940673
Motorcycles 2887194 3647493 4170445 4964753 5810599 6553664
Mopeds 408263 338985 307509 322584 332741 355870
Electric two
7341
wheelers
 Segmentation in terms of cc:
Segment-wise analysis of two-wheeler market Share in Share in
Segment Description 2001-02 2007-08
A1 Scooter with engine capacity less than 75 cc 5% 0.5%
A2 Scooter with engine capacity less than 75 cc-125 cc 5% 13%
A3 Scooter with engine capacity less than 125 cc-250 cc 12% 1%
B2 Motorcycle with engine capacity less than 75 cc-125 cc 62% 58%
Motorcycle with engine capacity less than 125 cc-250
B3 5% 21%
cc
B4 Motorcycle with engine capacity above 250 cc 1% 0.5%
C1 Mopeds 10% 6%

Scooter segment as a whole has been shrinking, except for the A2 segment
 Bikes having engine capacity 75-125 cc corner the major share of the two wheeler
market
 B3 segment is the fastest growing segment in the Indian two wheeler market

Production Figure:

Category 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Two
84,18,62
Wheelers 50,76,221 56,22,741 65,29,829 76,08,697 84,66,666 80,26,681
6
Production
Qty. In Million No.

Domestic sales Figures:

 Category 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Two
Wheelers 7,249,27
4,812,126 5,364,249 6,209,765 7,052,391 7,872,334 7,437,670
Domestic 8
Sales
Qty. In Million No.

Export Figure
Category 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Two
Wheelers 179,682 265,052 366,407 513,169 619,644 819,713 1004174
Export
Qty. In Million No.
 Emerging Trends

The factors playing a key role in the Indian automobile industry trends are as follows:

 Government: Unlike in the past, the Indian Government has gone through a total role
reversal by becoming the enabler rather than the controller. In the recent past it has
started providing better infrastructure, conducive atmosphere to attract investments and
implementing growth oriented economic policies.
 Competition: With the coming of the multinationals, an immense pressure has grown on
the Indian companies. As a result, a lot of joint ventures have taken place, some others
have invested heavily on R&D to build their own empires and the rest have perished.
 Customer: Armed with higher buying power and an ever increasing expectation from
products and services, the customer is undoubtedly the king and has propelled a fierce
competition among the major players in the market.
 Pollution and Safety Norms: cars as well as two-wheelers have met the most stringent
international norms of pollution. Euro II vehicles have become the norm of the day all
over India. Unfortunately, in the Indian context, safety in motor vehicles is a relatively
neglected area. Bad roads coupled with the absence of adequate safety features in the
vehicles such as airbag and crumple zone needs immediate attention. But awareness is on
the increase and the use of seat belts while driving has been made mandatory.
 Bikes: Keeping a pace with the global trends the two-wheeler segment has witnessed
tremendous growth both qualitatively and quantitatively. bikes with higher engine
capacities have done commendably well on the Indian roads. bike styling and fuel
efficiency has also seen major developments.

 Scooters: Sale of scooters increased 23.1% yoy during YTD FY 10 as against growth of
24.6% yoy in total two wheeler sales during the same period. The growth for scooters
was lower compared to the total two wheelers on account of slew of launches in the
 motorcycle segment. Contributions of scooters to two wheeler volumes have recovered
from 12% to 15% in Aug- Oct 2009 to 17.4% in February 2010. However, on YTD basis
the share of scooters of two wheelers remained flat at 15.4%. The share was higher by 75
bps when compared to 16.7% in jan’ 10. While Hero Honda has gained marginally from
this trend with its market share increasing from 13.4% in FY09 to 14.2% during YTD
FY 10, Suzuki( Market share increasing from 7% to 12%) and Mahindra 2- wheelers ( nil
to 6 % ) were the major gainers. Honda was on the losing side with its market share
falling from 57.1% to 50.8% On a monthly trend, Hero Honda has been gaining market
share in the scooter segment for past 4 months, which increased from 12.55 in November
2009 to 15.5% in February 2010.



Presence in rural areas: The government in its recent budget has focused on rural
development in the next few years to push India’s GDP growth rate above 10%. To
spur the growth in this sector, the Government plane to focus on higher agricultural
production, reduction in wastage of produce, higher credit support to farmers and
thrust to food processing sector. As per Crisil, over the next five years rural
penetration of 2- wheelers will increase from 22% to 26%, while urban penetration
will rise from 29% to 31%. During the same period, contribution of rural sales to
total two wheeler volumes will increase from 45 to 49%. Share of rural areas in
motorcycles is estimated to increase from 51.5% to 64.2% during the same period
 Chapter 3.2
Supply Side (Focus on 500 CC+)
This category has unleashed as the most exciting segment of biking in India. The bikes in this
segment have created a buzz that attracts those bike enthusiasts looking for thrilling biking
experience. These bikes are teamed up with heavy duty engines of the output capacity
ranging from 20.0-70.0 bhp and host lots of awesome features for right from the grand on
road presence to the unmatched power performance. In India the increasing interests of global
players like Suzuki, Royal Enfield, Harley Davidson, Ducati, Yamaha and Honda have
thundered the roads with their macho bikes.
Except Royal Enfield, no Company is manufacturing High-end bikes in India. They bring in
CBU(completely built units) from their foreign Plants and directly sell in India.
Yamaha, Honda and Suzuki leverage their dealer network for their lower range and do not
have any dedicated showrooms for the bigger range.
HD and Ducati have set up a new distribution structure. Both companies typically sell just
around 1 – 3 bikes per month per showroom and have just around 2 showrooms each (refer
excel sheet). Aprilia,MV Agusta and KTM are yet to launch. It is rumoured that Kinetic may
import MV Agusta and sell on their behalf. Bajaj is likely to be KTM partner in India.
Models available in India above 500 CC Category:

Company
Model 1 Model 2 Model 3 Model 4 Model 5 Model 6
Name
Honda CBR 1000RR CB1000R
Yamaha VMAX MT01 YZF R1
Harley
Sportster Dyna VRSC Softail Touring CVO
Davidson
Sports Street Super
Ducati Hypermotard Monster
Classic fighter Bike
Royal
Classic 500
Enfield
Intruder Hayabusa
Suzuki
M1800R 1300
Aprilia Company has recently tied-up with Hero Motors, will be launching scooters
 as well as Bikes in this category during 2010-11
MV Agusta Company is proposing to launch their Bikes very soon
Company is proposing to launch their Bikes very soon. In all probability Bajaj
KTM
will be their partners in India.
Company had announced in 2008 serious plans of entering India but there is
Triumph no evidence of any dealership network. Apparently you can specifically order
your machine with local dealers who would import it for you.
 Chapter 3.3

Company Profiles:

Honda Motorcycle & Scooter India Pvt. Ltd (HMSI) is a fully owned subsidiary of Honda
Motor Company Limited, Japan established in 1948. Honda is the world's largest
manufacturer of two wheelers. Set up in 1999, it was the fourth Honda automotive venture in
India, after Hero Honda, Kinetic Honda Motor Ltd and Honda Siel Cars India Limited.
Honda Motorcycle & Scooter India Pvt. Ltd was founded on August 20, 1999 at Manesar
near Gurgaon in Haryana. The foundation stone for the Honda factory was laid on December
14, 1999 and the factory was completed in January 2001.

Headquarters of the company are located at Gurgaon in Haryana state of India. In December
2002, HMSI got ISO 14001 certification.
HMSI factory is located in Manesar where scooter and bikes are produced but high hand
bikes like CBR and CB1000R which has been launched in India is brought down from Japan
in completely built units form and it uses its various distribution network for sales which
covers every state of India.
Yamaha Motor Co., Ltd. was founded in 1955 and made its initial foray into India in 1985.
Subsequently, it entered into a 50:50 joint-venture with the Escorts Group in 1996. However,
in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of
Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an
agreement with YMC to become a joint investor in the motorcycle manufacturing company
"India Yamaha Motor Private Limited (IYM)". IYM operates from its state-of-the-art-
manufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and produces
motorcycles both for domestic and export markets. High Hand bikes above 500 cc like
VMAX, MT01, YZF R1 are brought down from Japan in a completely built units form. The
distribution is done through its own networks which are currently running in all over India.

Harley Davidson founded in 1903 at USA has recently launched in India with 12 models. and
its booking will start from 20th April 2010 and it will be delivered to customers from June
2010. Its showrooms will be mostly concentrated in the cities like Delhi, Mumbai, Bangalore,
Chandigarh and Hyderabad. Its dealers are yet to be finalized. Harley-Davidson was first
granted permission to start operations in India in 2007 but it had to hold back on its plans
because of a crushing import duty of over 100 per cent. In each of its showrooms, they will
offer a range of genuine Harley-Davidson riding gear, apparel, parts and accessories to
customise their bikes.
Ducati was founded in 1926 at Italy and it has recently launched in India with its various
models like Hypermotard, Monster, Sports Classic, Street fighter, and Super Bike. Precision
Motor India Private Limited is an exclusive importer of Ducati motorcycles in India. They
have opened two showrooms, one in Mumbai and other in Gurgaon.Italy's Ducati Energia has
also entered into a 50:50 JV with Kinetic Group company Kinetic Communications to locally
produce a host of auto-electrical components for two- and three-wheelers. The unit will start
production within the next three months with an initial investment of Rs 15 crore.

In 1893, Enfield Manufacturing Co. Ltd. was founded in England. Royal Enfield motorcycles
made in England were being sold in India from 1949. In 1957 tooling equipment was sold to
Enfield India so that they could manufacture components. The first machines were assembled
entirely from components shipped from England, but by 1962 all components were made in
India. In 1994, Eicher Group bought Enfield and started its operation in India. The
manufacturing plant is in Chennai, in South India. Royal Enfield has a good distribution
network in India.
Suzuki Motorcycle India Private Limited subsidiary of Suzuki Motor Corporation, Japan
founded in 1909.

Suzuki has installed manufacturing plant in Gurgaon (Haryana) having the annual capacity of
1, 75,000 units, but all the high hand bikes are imported in complete build unit. Suzuki has its
showrooms throughout India by which the high end bikes are sold.

Nature of Competition and Cooperation:

According to the dealers, each company has its own fan following and considering the low
volumes at the moment, the brand loyal customers come and purchase these bikes without
having too much of an evaluation with competition. There is no evidence of any cooperation
amongst the players – not even to lobby for lower duty rates.

Chapter 3.4

Electric Vehicles

Electric Two wheeler Market in India:

The face of auto industry that was redefined with the invention of fuel-efficient four-stroke
engine technology is all set to see dawn of a new era in two-wheeler Industry. It's not petrol
or diesel or any other fuel, but its electricity that have initiated a revolution in two-wheeler
industry in India.
Indian two-wheeler industry has embraced the new concept of Electric Bikes and Scooters
that are very popular mode of personal transport in the developed countries like America,
Japan and China. With the rising cost of fuel at International and national level, increasing
levels of pollution and congestion in transport system specially in Urban areas, higher
running and maintenance cost of vehicle, the electrically charged bikes or scooters have very
bright future in area of personal transportation.

Growth in electrical two wheeler Market:

At a time when the growth of two-wheeler industry has come down to a mere 2% and
double-digit growth seems to be far, electric vehicles (EVs) are estimated to grow by 40-
45% in 2009-10. According to the recently formed Society of Manufacturers of Electric
Vehicles (Smev), sales of total electric vehicles in the country (97-98% of which are two-
wheelers) is estimated to jump by 45% in the current financial year at 1,60,000 units as
compared to 1,10,000 units sold in 2008-09.“Though electric two-wheelers constitute
around 1.5% of the total two-wheeler sales in the country, there is huge growth
potential in the segment because of extremely low running costs vis-à-vis other two-
wheelers and a pollution-free drive,”
Driver of Growth:

 As per industry estimates, assuming a 60 km drive every day, an EV user can end up
saving Rs 12,000 a year, including the replacement cost of the batteries.
 Government sponsored research is absolutely critical to the growth and development
of electric two-wheeler industry in India
 Soaring oil prices
 Increasing levels of pollution
 Alternate clean sources of power,
 Low Maintenance Cost, Judging by this fact the potential for electric two wheelers is
tremendous.
 The Society of Manufacturers of Electric Vehicles (SMEV) has recommended the
government in a bid to discourage importing e-bikes and help increase production in
the country.
Customer Segments for electric 2 vehicles:

Apparently the biggest customer segment is - ladies, younger kids and older people because
of low weight; pollution free and ease of recharge. Also these are very comfortable for short
distances.

The second biggest customer segment is institutional – like airports, hospitals, research
institutes, Archaeological Survey of India, townships of public sector firms etc.

Electric Bike & Scooter Models in India:

Company Model Segment Motor Power & Range

Hero Ultra Hero Ultra Scooter 250 Watts 45 Km Per Charge

Hero Ultra Hero Ultra Extra Scooter 250 Watts 60 Km Per Charge

Hero Ultra Hero Ultra Maxi Scooter 250 Watts 70 Km Per Charge

Hero Ultra Hero Ultra Velocity Scooter 500 Watts 50 Km Per Charge

YO Scooter 750 Watt 75 to 80 km @ 70kg

Yo Speed
& 55 to 60 km @ 135 kg

YO Yo Spin Scooter < 250 Watts 55 Km Per Charge

YO Yo Smart Scooter < 250 Watts 75 Km Per Charge

Company Model Segment Motor Power & Range

YO Yo Trend Scooter < 250 Watts 50 Km Per Charge

YO Yo Tuff Scooter < 200 Watts 50 Km Per Charge

YO Yo Trust Scooter < 200 Watts 75 Km Per Charge

YO Yo Teen Scooter < 200 Watts 50 Km Per Charge

EKO vehicle Cosmic Bike

ACE motors e-bike Bike 220 Km /Charge

BSA Motors Ltd. Smile Scooter 250 W

BSA Motors Ltd. Diva Scooter 250 W

BSA Motors Ltd. Street rider Scooter 250 W

BSA Motors Ltd. Roamer Scooter 500 W

BSA Motors Ltd. Roamer+ Scooter 800 W

 CHAPTER 4

FINDINGS AND

ANALYSIS
 AGE GROUP
12% 12%

15-20
35%
21-25
41%
26-30
31-40

Income Group

10%

15% 35%

1lac-5 lac
6lac-10 lac
11lac-15 lac
16lac-above
40%
 BIKES

10.50%

Yes
NO

89.50%

MARKET SHARE

12.50% 12.50%
8.50%
Yamaha

28% Honda
Hero Honda
others
35.50%
Bjaj Auto
TVS Motors

3.00%
 Engine Power

10% 5%

50% 100 cc-125 cc

126 cc-150 cc
35%
151 cc-200 cc
200 cc-above cc

Super Bikes

5%

YES
No

95%
 Market Share Of Super Bike
2%
4% 20%

34% Ducati
Yamaha
Honda
Harley Davidson
40%
Other

Bike Cost

4% 17%
10%

1 lac-5 lac
6 lac-10 lac
11 lac-15 lac
16 lac-above
69%
 Willingness to purchase Super Bikes

15%

Yes
No

85%

Brand Name

2% 12%

30%
Harley Davidson
Ducati
Yamaha
35%
Honda
 CHAPTER 4

CONCLUSIONS,
RECOMMENDATION
AND BIBLIOGRAHY
 LIMITATIONS

Some of these limitations can be overcome while some can be overlooked for a smooth
conduction of research. Some of those restrictions that came my way during the research
were:-

► Due to time limitation, it was not possible to cover all the retailers of super bikes.
► Scope of the study is limited, so it cannot be said that it is a true representation of the
whole company
► Sample size of 100 respondents is not enough to collect accurate information.
► Services often delayed because of the technical problem in the complete network.
 RECOMMENDATIONS

The recommendations, which are to be suggested to BMW, are as follows:

BMW should open the customers care department, wherein queries of clients can be timely
solved.

More authority should be delegated to the Branch Offices in order to speed up the working
process of geting cars and bikes

Technical Connectivity at BMW offices should have a proper check and control by the team
of experts from time to time.

BMW should organize some cultural events quarterly or yearly basis to increase the bonding
among the employees as well as customers.

BMW should try to make effective pay out system to business partner i.e.franchise owner.
 CONCLUSION

BMW has to launch its super bike for the Indian customers.The purchasing power of Indian
customer is increasing day by day and the psychography of Indian customer is changing and
inclining towards the purchasing of those items which are premium to a particular segment.
The latest example is the success of Yamaha bikes in middle segment. though the prices of
Yamaha bikes are much high in comparison with the other bikes of same engine power but
the Indian customer is loving to buy them. So this is the right time for bmw to launch its
super bikes in india.
AUTHOR

 Porter Michal : Competitive Strategy; 1st edition,2004,free press,Londan.

 Kotler Philip et all: Marketing Management;13th edition,2009,Pearson

Education,New Delhi.

 Kothari C.R., Research Methodology;2nd edition,2004,New Age, New Delhi.

ANNEXURE-5
Website
 www.siamindia.com

 www.tutor2u.com

 cfltaskforce.treasury.gov.au

 www.indiainfoline.com

 www.Yamahaindia.com

 www.researchandmarkets.com

 www.automobileindia.com

 www.ymsl.in

 www.financialexpress.com

 www.indianexpress.com

 www.autoindia.com

 www.automobileindia.com

 www.icmrindia.org

 auto.indiamart.com

 www.yamaha-motor-india.com

 www.honda.com

 www.tvs.in

 www.herhonda.com